Hana Financial Group will relocate its headquarters from Euljiro, Seoul, to Cheongna, Incheon, on September 1. The group estimates that the move, along with the relocation of its affiliates, will generate an economic impact of 3.4 trillion won and create approximately 15,000 jobs over the next decade.
According to the financial sector on August 4, Hana Financial plans to change its headquarters location from Euljiro in Jung-gu, Seoul, to Cheongna in Seo-gu, Incheon, with affiliates moving in sequentially.
The specific schedule and personnel for the move have not yet been finalized. The financial sector anticipates that around 2,200 employees will relocate to Cheongna, including about 180 from Hana Financial Holdings, over 900 from Hana Bank, and 550 each from Hana Card and Hana Life. Including staff from the existing integrated data center and Hana Global Campus, the total workforce in Cheongna is expected to reach about 4,000.
The relocation of a major financial holding company is expected to have significant effects on tax revenue and local economic revitalization. In the first year alone, the move is projected to generate an increase of approximately 58 billion won in tax revenue for Incheon, including acquisition tax, property tax, and comprehensive real estate tax.
Starting next year, around 4,000 employees from about ten Hana Financial affiliates will work in Cheongna, leading to an additional annual tax revenue of over 23 billion won from local income tax, corporate local income tax, and property tax. Considering increases in real estate value and tax revenue, Hana Financial is estimated to pay a total of 420 billion won in taxes to Incheon over the next ten years.
Beyond tax revenue, the influx of partner companies and related service industries is expected to have a positive impact on the local economy. The overall economic impact, including production, added value, and employment effects, is estimated at about 3.02 trillion won. When combined with the direct effects of the headquarters and affiliate relocations, the total economic impact is expected to reach 3.4 trillion won.
The employment impact is projected to be around 15,000 jobs over the next decade. This figure reflects not only new hires by Hana Financial but also jobs created indirectly through the relocation of the headquarters and affiliates, as well as the influx of partner companies and service industries.
This estimate has significantly increased compared to the economic effects projected by Incheon City in 2022, which anticipated an economic impact of 877.3 billion won and an employment impact of 7,666 jobs. The current projections indicate that the economic impact has increased by 3.9 times and the employment impact has nearly doubled.
Hana Financial cited the progress of development in the Cheongna area, rising real estate values, and the expansion of personnel at relocating affiliates as factors contributing to the increased estimates.
A financial sector official stated, "Hana Financial's move to Cheongna is not just about relocating its headquarters; it could serve as a catalyst for establishing Incheon as a financial and business hub. The concentration of a large financial workforce and affiliates in one location is expected to have a ripple effect on surrounding businesses and partner companies."
* This article has been translated by AI.
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